Real Cheap To Borrow, Where's The Catch?

I just received a call from my bank, luring me to accept an instant loan from them.

Knowing the economic equations, Banks always try their hardest to turn us into debtors and why on earth would I want to bear more debts than I should?

With the inflation rate staying at levels above the deposit rate, there really is a strong incentive for consumers like us to spend rather than to save. So this time, I thought why not and I listened patiently and waited for the catch.

USD100,000 Loan
USD400 interest per month
Repayment spread across 6 months

Where's the catch?

In an essay at the website of the monetary authority, it reads: "Generally speaking, negative real interest rate is an abnormal phenomenon that has implications for economic and financial stability. Given a choice, we'd prefer not to have negative real interest rates."

We don't have a choice, do we? Hong Kongers are bounded by the currency peg and must keep our interest rates low as the U.S., troubled by the fallout of the credit crisis, is cutting the cost of money to stave off a recession.

The catch is, we are currently in a negative real interest rate era. Be warned!